Use Of Robo Advisors by Fintech Companies to Facilitate Mutual Fund Investments

Abstract

Robo advisors are considered as the mathematic algorithms which are used to understand the investor need and create portfolios based on their risk bearing capacity. In fintech robo advisors are widely used in the mutual fund industry where the investor behaviour is understood through an online survey and based on the risk and return expectations of the investor the mutual funds are assigned to the investor and create a well maintained portfolio. The study is carried out to understand the robo advisors available in the market and how they are utilised. This study helps the investors to understand how to choose robo advisory services provided in the market and what precautions are necessary before selecting one. With the study it is understood that the robo advisors charge different rates of fees for their services and the fees charged should be cross verified by the investor. They also ask the investors to keep a minimum balance in their account and this also varies from company to company. Mutual funds are gaining strong push in the market and beginners to investment choose mutual funds to start with. Robo advisories help gain this impact to mutual funds with their unbiased services.